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United Western Bancorp sells MBS for less than a penny on the dollar

By Implode-Explode Heavy Industries

United Western receives $378,000 for $47.3 million of mortgage-backed securities, backed primarily by option ARM loans:

United Western Bancorp, Inc., a Denver-based holding company whose principal subsidiary, United Western Bank® (the ?Bank?), is a community bank focused on expansion across Colorado?s Front Range market and selected mountain communities, today announced that the Bank sold mortgage-backed securities with an unpaid principal balance of $47.3 million of lower tranche mortgage backed securities secured primarily by ?option-adjustable-rate? mortgage loans (the ?Option ARM Securities?) to an unaffiliated third party. Total consideration received for the Option ARM Securities was $378,000. As a result of the disposition, the Company expects to record a pretax loss on sale of $47 million, or approximately $29.8 million net of tax.

Full post as published by Mortgage Lender Implode-o-Meter on July 02, 2009 (boomark / email).